Mt. Gox CEO Could Get 10-year Prison Sentence

Japanese law enforcement agencies willrequirein court 10years jail term for the MarkKarpeles, ex-head of the cryptocurrency exchange Mt.Gox.He is accused offraudand misuse ofclients'money.

The prosecutors of thebankruptcyof Mt.Goxwill be required to sentence the ex-CEO to a 10-year jail term.

Accordingto the authorities, Karpelesusedclients' money for his personal purposes. In September-December 2013,Karpelestransferred from Mt.Goxmorethan $3 million of customers’ money to his bank account. Next, the defendant invested this money in a software development business in which he had a vested interest.

Karpelesis also accused of manipulating the Mt.Gox trading system.Allegedly, the ex-CEO fabricated financial reports to inflate the estimated number ofcryptocurrencieson the exchanges’ wallets.

MtGoxfiledfor bankruptcy in April 2014.Then theexchangeclaimed it was attacked by hackers who stole more than 850,000BTC.Karpeles was almostimmediatelyarrested.The triallasted until 2017, and in July thecourtpledgedhim innocent.